The world of finance has been turned on its head by open banking , allowing for the sharing of data with the aim of transforming customer experience . In Europe , and in particular the UK , fintechs have sprung up to both challenge and benefit incumbents . The urgency to prepare for APIs , the rise of challengers , and all open banking has to offer has been compounded by regulation . In 2018 , the European Union implemented PSD2 , the second Payment Services Directive , updating legislation for payments . The update acknowledges the rise of fintechs and will seek to ensure security and consumer protection while evening the playing field for challengers .
PSD2 will come into full force in the UK in September , and even with Brexit and the EU ’ s jurisdiction only applying to member states , such directives will have a global impact since any organisation that does business in an EU member state will be impacted . Gavin Littlejohn , Chair of the Financial Data Technology association which campaigns on banking and financing issues across the globe , also sits on the steering committee for open banking in the UK . “ This has given me a lot of insight into how implementation takes place , the pros and cons and types of processes ,” he comments . We caught up with Littlejohn at Money20 / 20 Asia to benefit from some of this insight into developments in the open banking arena .
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